The 2017 Budget Review highlights

The 2017 Budget Review highlights

HARARE, July 20 (The Source) – The highlights from Finance Minister, Patrick Chinamasa’s Budget Review and Outlook.

  • Economy grew 0.7 percent in 2016 against a target of 2.7 percent due to ElNino induced drought
  • Household consumption fell by 11,8 percent in 2016.
  • Agriculture is expected to grow by 21,6 percent in 2017
  • Mining sector contributed 2,2 percent to fiscus in 2016 and is seen growing by 5,1 percent in 2017
  • Mineral exports amounted to $2,2 billion in 2016 from $2,1 billion in 2015; gold and platinum being major contributors
  • Diamond output during the first half of 2017 stood at 1,1 million carats compared to 690,000 carats in the previous year
  • Manufacturing sector grew 0,3 percent in 2016 compared to 0,2 percent in the previous year
  • Construction industry registered a 3,5 percent growth in 2016 on the back of housing construction
  • Economy to grow 3,7 percent in 2017 driven by agriculture, mining, and electricity and water.
  • 2017 full year revenue is seen at $3,7 billion
  • Wage expenditures in 2016 accounted for 65,5 percent and 91,7 percent of budget expenditure and revenue
  • Health Levy Fund of 5 cents for every dollar of mobile airtime and data introduced in 2017 has to date mobilised $8,5 million
  • Government channelled $403 million towards infrastructure development projects in 2016
  • Treasury bills amounting to $2,1 billion were issued in 2016 to honour $1,7 billion legacy debt and to finance the previous year’s $356 million budget deficit
  • Total debt estimated at $11,3 billion as at December 2016
  • Total banking sector deposits increased by 15,8 percent to  $6,5 billion in 2016
  • Individual lending rates went down to 9 percent in the first half of 2017 from 12 percent in 2016
  • Non-Performing Loans declined to 7,87 percent in 2016 from 10,82 percent in 2015
  • Agriculture exports in 2017 seen increasing by 6,7 percent to $1,16 billion
  • Manufactured exports seen at $363 million in 2017 from $320 million in the previous year
  • Total exports seen at $3,9 billion in 2017 versus imports of $5,4 billion